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Syriza Wins; Euro, Stocks Slide

By Cina Coren
Cina Coren is a former Wall Street broker and financial advisor. She holds a Master's degree in Communications and spent many years writing for international news outlets and journalistic publications. Today, Cina spends most of her time writing internet articles and blogs, and reading various newspapers to stay on top of the news.

The euro skidded to an 11-year low and stock prices fell on Monday as Greece's Syriza party promised to roll back austerity measures after sweeping to victory in a snap election, putting Athens on a collision course with international lenders.

The euro fell to an 11-year low of $1.1098 on the vote outcome, before recovering to $1.1171, still down 0.3 percent from last week.

The election was the second blow since last week for the euro, still smarting after the European Central Bank unveiled a huge bond-buying stimulus program.

Both U.S. stock futures and Japan's) fell 0.6 percent while MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.1 percent on heightened concerns the Greek election results could lead to renewed instability in Europe.

Safe-haven assets were in favor, with the 30-year U.S. bonds yield hitting a record low of 2.347 percent. The 10-year notes yield fell 5 basis points to 1.767 percent.

Swiss Franc

The Swiss franc rose 0.7 percent to 0.8767 to the dollar while the yen edged up to 117.63 to the dollar. Gold gained 0.3 percent to $1,297.86 per ounce, inching near its five-month high of $1,306.20 reached on Thursday.

Syriza leader Alexis Tsipras is set to become prime minister of the first euro zone government openly opposed to the bailout conditions imposed by the European Union and International Monetary Fund during the economic crisis.

Renegotiating with other euro zone governments could even raise the risk of Greece eventually leaving the currency union, though most market players expect Tsipras to eventually make compromises to avoid the so-called "Grexit".

Indeed, the broad consensus in the markets is that any renewed tensions over Greece are unlikely to hurt broader investor sentiment much beyond an initial shock.

Cina Coren
About Cina Coren
Cina Coren is a former Wall Street broker and financial advisor. She holds a Master's degree in Communications and spent many years writing for international news outlets and journalistic publications. Today, Cina spends most of her time writing internet articles and blogs, and reading various newspapers to stay on top of the news.
 

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